Escolar Documentos
Profissional Documentos
Cultura Documentos
ANNUAL REPORT
2014
Mission
We are committed to enhancing human health and wellbeing by providing
contemporary and affordable medicines, manufactured in full compliance with global
quality standards. We continually strive to improve our core capabilities to address
the unmet medical needs of the patients and to deliver outstanding results for our
shareholders.
Vision
We will be one of the most trusted, admired and successful pharmaceutical companies
in the region with a focus on strengthening research and development capabilities,
creating partnerships and building presence across the globe.
Core Values
Our core values define who we are; they guide us to take decisions and help realize
our individual and corporate aspirations.
Commitment to quality
We adopt industry best practices in all our operations to ensure highest quality
standards of our products.
Customer satisfaction
We are committed to satisfying the needs of our customers, both internal and external.
People focus
We give high priority on building capabilities of our employees and empower them to
realize their full potential.
Accountability
We encourage transparency in everything we do and strictly adhere to the highest
ethical standards. We are accountable for our own actions and responsible for
sustaining corporate reputation.
Corporate social responsibility
We actively take part in initiatives that benefit our society and contribute to the welfare
of our people. We take great care in managing our operations with high concern for
safety and environment.
Contents
Our Story
Who We Are
05
08
Management Committee
09
Executive Committee
09
10
13
15
What We Offer
16
19
21
Our People
23
29
31
33
Corporate Events
38
41
43
Chairmans Statement
44
46
55
56
Shareholders Meeting
58
60
61
62
63
64
65
66
67
500
Products
3000
People
35
Years
Our Story
50
Countries
Who We Are
Celebrating 35 years of health & wellbeing
Incorporated in 1976, Beximco Pharma started its operation by importing products from global MNCs like Bayer AG,
Germany and Upjohn Inc., USA and selling them in the local market. In 1980 the Company began manufacturing these
products under licensing arrangement. From that humble beginning, Beximco Pharma has grown from strength to strength,
and today it has become a leading manufacturer and exporter of medicines in Bangladesh. Companys manufacturing
facilities have been accredited by the major global regulatory bodies, and it has expanded its geographic footprint across
all the continents.
In its long journey of 35 years, the Company remains committed to make a difference in the lives of people by providing
high quality medicines at affordable cost.
We know good health is priceless and thats why we always strive to provide our patients with high
quality and affordable medicines
Annual
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2014|| 7
Salman F Rahman
A S F Rahman
Chairman
Vice Chairman
Nazmul Hassan MP
Managing Director
Director
Director
Iqbal Ahmed
Director
Independent Director
Independent Director
Company Secretary
Mohammad Asad Ullah, FCS
Executive Director
Management Committee
Nazmul Hassan MP
Managing Director
Ali Nawaz
Rabbur Reza
Director, Commercial
Lutfur Rahman
A R M Zahidur Rahman
Shamim Momtaz
Director, Manufacturing
Rizvi Ul Kabir
Prabir Ghose
Executive Committee
Osman Kaiser Chowdhury
Nazmul Hassan MP
Rabbur Reza
Ali Nawaz
Afsar Uddin Ahmed
2012
2014
2013
2009
2011
2010
2006
2005
2008
First Bangladeshi company to
receive GMP accreditation from
Therapeutic Goods Administration
(TGA), Australia, and Gulf Central
Committee for Drug Registration,
for GCC states; Technology transfer
arrangement to manufacture
Roches ARV drug Saquinavir
1993
1992
1985
1983
2003
1980
Started manufacturing products of
Bayer AG, Germany and Upjohn Inc.,
USA, under license agreements
1976
Company incorporated
Nazmul Hassan MP
Managing Director
Nazmul Hassan MP
Managing Director
Beximco Pharma has started exporting to Romania with its multi-vitamin product Sunvita Gold.
This is for the first time a pharmaceutical company from Bangladesh has launched product in
Romania.
What We Offer
Beximco Pharma currently produces about 300 generics in more than 500 strengths and dosage forms. It also produces a
number of active pharmaceutical ingredients (APIs). Beximco Pharmas portfolio encompasses various therapeutic categories,
including antibiotics, analgesics, respiratory, cardiovascular, central nervous system, dermatology, gastrointestinal etc.
The Company has strong capabilities with specialized drug delivery systems that have differentiated itself from others.
Many of its brands remain consistent leaders in their respective therapeutic categories and the Company continuously
reviews and expands its product portfolio in order to ensure that people have access to newer, better treatment options
at affordable cost.
In 2014 Beximco Pharma expanded its portfolio with: 24 new generics in a total of 28 presentations across 9 different
therapeutic categories. Three products were launched for the first time in Bangladesh.
Beximco Pharma, with its well established and balanced portfolio of generics, is able to respond to the needs of physicians,
patients, and health care providers, both therapeutically and economically.
heres to
Norethisterone BP 5 mg tablet
Synro d
Levothyroxine 50 mcg tablet
Indication: Hypothyroidism
Our People
our life-blood
We recognize that if we want to see our business successful today and sustainable tomorrow, we must invest in our people
who are making a difference. Our 3000-strong dedicated workforcetheir collective resolve to excelhave always guided
us towards newer achievements. We constantly seek to attract and retain the best talent in the industry and always take
initiatives to ensure that our people are enabled and motivated. We try to create a culture in which all our employees feel
valued, empowered and inspired to grow personally and professionally along with the company. Our ability to transform
ourselves is driven by a strong emphasis on employee empowerment at every level. We regularly invest in training and
development of our employees, and our Learning and Development Program (LDP) is planned for enhancing skills through
focused, professional training in order to create and maintain our competitive edge. We actively encourage equality of
opportunity for all our employees and we currently have a good number of female employees working throughout the
organization including senior level management.
Specialized Products
We continue to expand our product portfolio and our focus on specialized
dosage delivery systems has created strong differentiation.
IN
BANG MADE
LADE
SH
Every capsule, every tablet, every drop of suspension, every molecule of every medicine is prepared with
care to enhance the quality of life. Thats our humble goal, everyday. More than 50 countries around the
world, from the utterly deprived African heartland to the incredibly privileged European elite, from
Rangpur to Kuakata, we are humbled by the opportunity to deliver the smiles of good health to humanity
across colors, creed and communities. A string of 4 Export Gold Trophies, an array of international
accreditations, and a sea to travel lying open in front, we, at Beximco Pharma, are
discovering the child within trying to explore new frontiers.
Heres to the future. Heres to life.
www.beximcopharma.com
Report
2014
Research and Development
|Annual
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Report2014
2014||| 29
29
Annual
Report
We are building a global generic drug company focused on providing high quality,
affordable generic drugs to patients around the world.
Donation to CRP
Mr. Salman F Rahman, Vice Chairman of Beximco Group,
along with other senior officials, visited the Centre for the
Rehabilitation for the Paralysed (CRP) in Savar on October
20 and donated large quantities of medicines and made
cash contribution to CRP founder Ms. Valerie Taylor. During
the visit he was briefed about the overall activities of CRP,
especially the rehabilitation programs for the Rana Plaza
victims. Then CRP management showed him around the
CRP premises where Mr. Rahman interacted with patients
undergoing treatments in different units.
Medical Camp
Beximco Pharma sponsored medical camp at Rayerbazar
with free medicines on March 15 which was organized by
Active Citizens (Durjoy), an NGO associated with Democracy
Watch.
Our Relationships
Beximco Pharma has a long and successful track record of partnership and alliances with research based multinational
companies. These partnerships, leveraging our strengths, contribute significantly to the success of our strategy and ensure
sustainable growth of the company. Beximco Pharma always looks forward to long and mutually beneficial partnerships, both
from companies and research organizations, that can produce positive results for both. The company has successfully built a
strong brand value within the medical community and its medicines are trusted by physicians and patients in the domestic
as well as overseas markets. Beximco Pharma seeks to strengthen its relationship with all the major stakeholders within the
healthcare value chain, and it clearly differentiates from others by providing value added, academic services to the medical
community.
Annual
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Report2014
2014|| 37
Corporate Events
Intelligence
16 May, 2014
www.scripintelligence.com
Annual
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Report2014
2014|| 39
Our individual and collective experiences allow us to better understand the needs of our
patients and further our work to improve health and wellbeing of our people.
Registered 16 products in
7 countries
In Memory of...
Mahbubul Alam
Independent Director
Director
The Board of Directors and all the employees of Beximco Pharma recall with appreciation and gratitude the contribution
they have made for the company during their lifetime.
AGENDA
1. To receive, consider and adopt the Audited Financial Statements of the Company for the year ended 31st December, 2014 together
with reports of the Auditors and the Directors thereon.
2. To declare 10% Cash and 5% Stock Dividend.
3. To elect Directors.
4. To approve the appointment of Independent Director.
5. To appoint Auditors for the year 2015 and to fix their remuneration.
6. To transact any other business of the Company with the permission of the Chair.
By order of the Board,
(MOHAMMAD ASAD ULLAH, FCS)
Dated : 11 May, 2015
Executive Director & Company Secretary
NOTES:
(1) The Record Date of the Company shall be on 21 May, 2015.
(2) The Shareholders whose names will appear in the Share Register of the Company or in the Depository Register on the record
date i.e. 21 May, 2015, will be entitled to attend at the Annual General Meeting and to receive the dividend.
(3) A member entitled to attend and vote at the General Meeting may appoint a Proxy to attend and vote in his/her stead. The Proxy
Form, duly stamped, must be deposited at the Registered Office of the Company, not later than 48 hours before the time
fixed for the meeting.
(4) Admission to the meeting room will be strictly on production of the attendance slip sent with the Notice as well as verification
of signature of Member(s) and/or Proxy-holder(s).
(5) Members are requested to update particulars of their Bank Account, change of address (if any) and 12 digit Taxpayers
Identification Number (E-TIN) through their respective Depository Participant.
(6) No gift or benefit in cash or kind shall be paid to the holders of equity securities in terms of Clause (c) of the Notification
No.SEC/ SRMI/2000-953/1950 dated 24 October 2000 for attending the AGM of the Company.
Chairmans Statement
As stated in the Managing Directors Statement and
Directors Report, your Company has achieved GMP
clearance from Health Canada and Taiwan FDA, both
first-time for a Bangladeshi company. The Company also
successfully completed US FDA inspection in January
2015, without any 483 observations. In the first quarter of
2015, we commenced export to Australia which is again a
milestone achievement for the Bangladesh pharma industry.
We believe that export of generic medicines has high
potential for growth and our reputation as a manufacturer
of high quality medicine and reliable supplier will help us
further expand our footprint in the global market.
Dear Shareholders,
It is great pleasure to welcome you all to the thirty-ninth annual general
meeting of Beximco Pharmaceuticals Limited.
In 2014 the Company crossed Taka 10 billion mark in domestic sales
for the first time in its history. This is a proud achievement for all of
us. Despite political turmoil, especially in the first quarter of 2014, the
Company managed to achieve 9% growth in the domestic market. With
our continued focus on research and development to strengthen the
product portfolio, strategic priority on export business and investment
to enhance our manufacturing, marketing and supply chain capabilities,
the Company continues to progress in the right direction to deliver
sustainable returns for the shareholders.
In my last report, I mentioned that we needed to make investment
in building manufacturing facilities to further diversify our portfolio
and increase capacity to meet the growing demands. Moreover,
some of our manufacturing facilities built in the late 80s need upgradation, replacement and expansion. You will be happy to note that
the Company is now implementing a number of projects worth Taka
1,000 crore over the period of 2014-17. The projects include creating
facilities for a number of new therapeutic categories and relocation,
expansion and up-gradation of some of our old facilities. The projects
are to be financed using the Companys own funds as well as through
the use of external debt. We have already made a significant amount of
investment in this regard from our own sources. We have signed a loan
agreement for US $ 51.559 million with BHF Bank, Germany to partly
finance the plant and machinery to be procured for the projects. We
believe, once implemented, these projects will help secure Companys
current and future growth.
A S F Rahman
Chairman
Dear Shareholders,
Welcome you all to the 39th Annual General Meeting (AGM) of Beximco Pharmaceuticals Limited. It is my privilege to place before you
the Directors Report and the Audited Accounts of the company for the year ended December 31, 2014 along with the report of the
auditors thereon.
1.
Operating Performance
1.1 Business Outlook- A General Overview
The Bangladesh economy after struggling in the beginning of 2014, mostly due to the political disturbances, recovered well
and grew at 6% plus. Gains made in agriculture, services, foreign trade and remittances helped achieve this growth despite
the fact that industrial growth slumped in 2014. Inflation based on Consumer Price Index declined from 7.6% in January
2014 to 6.99% in December 2014 with a fall in food prices being the primary factor. Strong export growth and inward
remittance from abroad helped to push the foreign exchange reserve to a record US $ 22 billion.
The exemptions on pharmaceutical product patents granted to the least developed countries are set to expire by end of
2015. In February this year, the LDCs led by Bangladesh, applied for extension of the exemption period till their graduation
from the LDC status. It should be noted here that, WTO-TRIPs council in 2013 granted extension of the general exemptions to
the LDCs for protecting IP rights for a period of 8 years till July 1, 2021. The issue of granting exemption on pharmaceutical
products patent is likely to be extended as well.
In absence of any significant changes in the government policy on public spending for healthcare, growth in demand for
pharmaceutical products will continue to be driven mostly by increased private spending backed up by the countrys steady
economic growth and increased health awareness of the people. Additionally, Bangladesh has established a strong base
for manufacturing pharmaceutical products and the industry has earned reputation as manufacturer of quality medicine.
Thus there is opportunity for the companies to achieve accelerated growth through exports. The reemergence of political
instability remains a risk to maintaining growth going forwards.
The domestic sales of the Company in 2014, for the first time crossed ten billion mark to reach at Tk. 10,706.4 million by
the end of the year. This is an appreciable 9.0% growth over Tk. 9,819.4 million in 2013. Domestic sales continued to be the
major contributor to revenue with 95.5% of sales being made in our local market. We achieved growth in all key therapeutic
segments.
The revenue from export sales in 2014 was Tk. 500.4 million. This is lower than Tk. 671.3 million exports in 2013. The
decline is mainly due to the fact that sales in 2013 comprised of few international tenders in addition to regular market
sales. In 2015 we are expecting export to rebound. During the year, we entered into two new markets- namely Romania
and Uganda and made 55 new registrations in 15 countries. In the first quarter of 2015, we commenced export to Australia
making another milestone not only for Beximco Pharma but for the industry as a whole.
Gross profit of the company rose to Tk. 5,104.2 million in 2014 an increase of 5.5% compared to previous year. The gross
profit as percentage of sales remain more or less stable- 45.5% as against 46.1% in 2013; the declining is due to higher
depreciation charge and increased overhead cost. Profit after tax also increased to Tk. 1,528.3 million in 2014, compared
to Tk. 1,404.8 million in 2013 marking a rise of 8.8%.
2.
2013
1,528,298
1,404,763
16,061
18,235
7,141,718
6,244,222
8,686,077
7,667,220
Proposed Dividend
3.
Stock Dividend
(183,926)
(175,167)
Cash Dividend
(367,852)
(350,335)
8,134,299
7,141,718
Dividend
The Board of Directors is pleased to recommend 10% Cash Dividend i.e. Tk. 1 per share and 5% Stock Dividend i.e. 5 shares for
every 100 shares held for the year 2014 for onward approval in the Annual General Meeting.
4.
Directors
4.1 Appointment of Independent Director
We are pleased to announce that Mr. Shah Monjurul Hoque has joined the Board in November 2014 as Independent Director
subject to the approval of shareholders in the 39th Annual General Meeting of the Company.
Mr. Monjurul Hoque, is a practicing lawyer in the Supreme Court of Bangladesh, both in the High Court Division and Appellate
Division. He is the founder of Hoque & Associates, a law firm in Bangladesh, of which he is the Proprietor. Mr. Hoque has
held various academic appointments in the field of law and has also acted as legal adviser to a number of corporate clients
in Bangladesh and as the enlisted lawyer of several Bangladeshi banks.
4.2 Death
Mr. Mahbubul Alam a Non-Executive Independent Director and Mr. Mohammad Abul Qasem Director of the Board passed
away during the year. The Board of Directors recalls with appreciation and gratitude their contribution as directors towards
the development of Beximco Pharmaceuticals Ltd.
Mr. A.S.F Rahman and Mr. Salman F Rahman, Directors of the Company retire by rotation as per Articles 126 and 127 of the
Articles of Association of the Company and being eligible offer themselves for re-election.
Mr. A.S.F Rahman is the Chairman and founder of Beximco Group. He is a distinguished business personality of the country
and has received many awards and accolades for his outstanding contribution to countrys industrial development. Mr.
Rahman was instrumental in introducing best-in-class corporate practice in Bangladesh and is widely credited as the
architect of Groups successful global strategy.
He graduated with Honours in Physics from the University of Dhaka in 1966, and also studied in the United Kingdom. Mr.
Rahman held a number of key positions with many reputed organizations including as the Chairman of IFIC Bank Limited,
Director of Industrial Promotion & Development Company, Director of Arab Bangladesh Bank Limited, Director of Pubali
Bank Limited and Director of the Investment Corporation of Bangladesh.
Besides being Chairman of Beximco Pharmaceutical Limited, Mr. A.S.F Rahman is also the Chairman of other three Listed
Companies of Beximco Group; Bangladesh Export Import Company Limited, Beximco Synthetics Limited and Shinepukur
Ceramics Limited.
Mr. Salman F Rahman is a renowned businessman of the country and is widely acclaimed for his contribution to the
development of private sector. He anchored the key initiatives that have helped build Beximcos corporate identity, and led
the Group into becoming a leading industrial conglomerate in the country.
He has held key positions in many business and industry associations which include President of Bangladesh Association of
Pharmaceutical Industries, President of Bangladesh Association of Publicly Listed Companies, President of the Federation of
Bangladesh Chambers of Commerce and Industry, President of SAARC Chamber of Commerce & Industry, President of the
Metropolitan Chamber of Commerce & Industry, President of the Bangladesh Textile Mills Association, Chairman of Abahani
Limited, a prominent sporting club in Bangladesh, and Chairman of the Board of Editors of The Independent an English
daily newspaper in Bangladesh.
Currently Mr. Salman F Rahman holds directorial position in other four publicly listed companies. He is the Vice-Chairman of
Bangladesh Export Import Company Limited, Beximco Synthetics Limited and Shinepukur Ceramics Limited and Chairman
of IFIC Bank Ltd.
Mr. Rahman has many accolades to his name and he holds a degree from Karachi University.
5. Auditors:
T he existing Auditors, M. J. Abedin & Co., Chartered Accountants, National Plaza, 109, Bir Uttam C. R. Datta Road, Dhaka-1205
who were appointed as Auditors of the Company in the Thirty-eighth Annual General Meeting of the Company has carried out the
audit for the year ended 31 December 2014.
. J. Abedin & Co., Chartered Accountants, National Plaza, 109, Bir Uttam C.R. Datta Road, Dhaka-1205, the Auditors of the
M
Company retires at this meeting and has expressed their willingness to continue in ofce for the year 2015.
6. Audit Committee
Due to death of Mr. Mahbubul Alam, Chairman of the Audit Committee, the Board reconstituted the Audit Committee as follows:
Chairman
Member
Member
Secretary
The details of the activities of the Audit Committee have been provided in the Audit Committee Report.
There is no signicant doubt about the ability of the Company to continue as a going concern.
9.
2014
2013
2012
2011
2010
9,100,000
3,678,516
11,206,886
500,469
5,104,191
2,109,556
1,528,298
25,818,728
20,920,185
9,100,000
3,503,349
10,490,699
671,289
4,838,800
2,093,594
1,404,763
23,051,128
19,775,552
9,100,000
3,046,390
9,289,115
470,116
4,389,401
1,909,829
1,319,389
20,316,639
18,408,162
9,100,000
2,517,678
7,890,242
390,315
3,786,533
1,677,849
1,198,525
19,289,344
17,128,128
9,100,000
2,098,065
6,490,847
330,541
3,173,207
1,361,532
1,051,649
18,191,956
15,974,086
5%
10%
57
4.15
58.70
14.14
89,913
68
882
88,963
5%
10%
56
3.82
47.20
12.36
92,831
68
880
91,883
15%
60
3.77
55.90
14.83
86,290
66
898
85,326
21%
68
3.93
93.60
23.82
88,697
58
896
87,743
20%
79
4.18
135.10
32.32
93,371
57
899
92,415
3,063
2,897
2,748
2,670
2,507
Number of Employees
Number of
meetings attended
Directors
Number of
meetings attended
A S F Rahman
15
Salman F Rahman
15
Nazmul Hassan MP
14
15
Iqbal Ahmed
15
A B Siddiqur Rahman
14
Mahbubul Alam
11
iii) Executives
iv) Shareholders holding 10% or more voting interest in the Company
20,402,347
2,630,325
8,530,825
796,083
1,042,672
7,469,709
7,487,196
12,087
-
A S F Rahman
Chairman
Corporate Governance
Compliance Report
Status of compliance with the conditions imposed by the Bangladesh Securities and Exchange Commissions Notification No. SEC/
CMRRCD/2006-158/134/ Admin/44 dated 07 August, 2012 issued under section 2CC of the Securities and Exchange Ordinance, 1969:
Condition Title
No.
Compliance Status
( in appropriate
Column)
Not
Complied Complied
1
1.1
1.2
1.2 (i)
1.2 (ii) (a)
1.2 (ii) (b)
1.2 (ii) (c)
1.2 (ii) (d)
1.2 (ii) (e)
1.2 (ii) (f)
1.2 (ii) (g)
1.2 (ii) (h)
1.2 (ii) (i)
1.2 (iii)
1.2 (iv)
1.2 (v)
1.2 (vi)
1.3
1.3 (i)
1.3 (ii)
1.3 (iii)
1.4
1.5
1.5 (i)
1.5 (ii)
1.5 (iii)
1.5 (iv)
1.5 (v)
1.5 (vi)
1.5 (vii)
1.5 (viii)
Remarks
(if any)
Appointment of an Independent
Director is placed for approval by the
Shareholders in this AGM
N/A
N/A
N/A
N/A
Compliance Status
( in appropriate
Column)
Condition Title
No.
Not
Complied Complied
1.5 (ix)
1.5 (x)
1.5 (xi)
1.5 (xii)
1.5 (xiii)
Remarks
(if any)
N/A
No remuneration was paid to any Director
during 2014 except Managing Director for
serving as Chief Executive and the Independent
Directors for their attendance in Meetings.
N/A
N/A
Condition
No.
Title
Compliance Status
( in appropriate
Column)
Not
Complied Complied
3.3 (iii)
3.3 (iv)
3.3 (v)
3.3 (vi)
3.3 (vii)
3.3 (viii)
3.3 (ix)
3.3 (x)
3.4
3.4.1
3.4.1 (i)
3.4.1 (ii) (a)
3.4.1 (ii) (b)
3.4.1 (ii) (c)
3.4.1 (ii) (d)
3.4.2
3.5
4
4.00 (i)
4.00 (ii)
4.00 (iii)
4.00 (iv)
4.00 (v)
4.00 (vi)
4.00 (vii)
4.00 (viii)
5
5 (i)
5 (ii)
5 (iii)
5 (iv)
5 (v)
6
6 (i) (a)
6 (i) (b)
6 (ii)
7
7 (i)
7 (ii)
Remarks
(if any)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
BCom (Hons), MBS (Finance & Banking), MBA (Finance), PGDHRM, AIPM
I have reviewed the Compliance of Conditions of the Corporate Governance Guidelines by Beximco
Pharmaceuticals Limited (the Company) for the year ended 31 December 2014. Such compliance is
the responsibility of the Company as stipulated in the above mentioned notification issued by Bangladesh
Securities and Exchange Commission (BSEC).
I have conducted my review in a manner that has provided me a reasonable basis for evaluating the
compliances and expressing my opinion thereon. This review has been limited to the measures adopted by
the Company in ensuring such compliances and this has not been for expression of opinion on the financial
statements or future viability of the Company.
According to the information and explanations provided to me by the Company, I hereby certify that all the
conditions of the Corporate Governance Guidelines have been complied with by the Company.
Dear Shareholders,
I am pleased to present the report of the Audit Committee of Beximco Pharmaceuticals Limited in pursuance with the
Corporate Governance Guidelines of Bangladesh Securities and Exchange Commission (BSEC). This report is a brief on the
activities performed by the Audit Committee.
External Auditor
The Committee considered and made recommendation to the board on the appointment and remuneration of the existing
auditors M/S M J Abedin & Company, Chartered Accountants for the year 2015 subject to the approval by the shareholders
in the 39th Annual General Meeting.
Independent Director
Chairman
Secretary
Shareholders Meeting
The 38th Annual General Meeting (AGM) of the shareholders of Beximco Pharmaceuticals Limited was held on June 21, 2014 at
Beximco Industrial Park, Saravo, Kashimpur, Gazipur. Mr. A S F Rahman, Chairman of the Company presided over the meeting. All
resolutions put before the shareholders were duly passed including the agenda of paying 10% cash and 5% stock dividend for the
year 2013. Performane of the company in 2013 as well as future strategies were briefly discussed in the meeting. At the end of the
meetting Chaiman expressed his appreciation towards shareholders for their interest in the company and their continued support.
Taka in thousand
Tk.
Value Added :
Sales & Other Income
Bought-in-Materials & Services
Applications :
Retained by the Company
Salaries and Benefits to Employees
Interest to Lenders
Dividend to Shareholders
Duties & Taxes to Govt. Exchequer
13,531,721
(6,139,596)
7,392,125
100
1,886,105
1,548,362
724,315
551,778
2,681,565
26
21
10
7
36
7,392,125
100
Graphical View of
Selected Growth Indicators
Amount in Taka
Notes
2014
2013
4(a)
3.3 & 5
6(a)
20,634,246,854
20,393,278,737
235,208,190
5,759,927
18,567,329,474
18,364,313,070
198,223,509
4,792,895
7
8
9
10
11
12
8,366,279,107
2,493,657,338
554,183,898
1,397,498,648
1,223,673,153
2,475,026,831
222,239,239
8,903,422,328
2,411,881,986
433,352,407
1,249,434,697
1,186,637,111
3,026,383,161
595,732,966
29,000,525,961
27,470,751,802
20,920,185,325
3,678,516,520
5,269,474,690
1,689,636,958
294,950,950
1,299,220,315
2,308,651
8,686,077,241
19,775,552,465
3,503,349,070
5,269,474,690
1,689,636,958
294,950,950
1,349,578,805
1,341,619
7,667,220,373
Non-Current Liabilities
Long Term Borrowings-Net off Current Maturity (Secured) 15
Liability for Gratuity and WPPF & Welfare Funds
16
Deferred Tax Liability
17
3,372,593,206
901,709,327
741,522,518
1,729,361,361
3,312,618,059
1,151,400,702
610,628,150
1,550,589,207
4,707,747,430
3,153,121,293
663,838,072
357,710,839
164,283,115
454,720
368,339,391
4,382,581,278
2,776,266,125
754,903,558
383,170,553
141,582,304
973,367
325,685,371
29,000,525,961
27,470,751,802
ASSETS
Non-Current Assets
Property, Plant and Equipment- Carrying Value
Intangible Assets
Investment in Shares
Current Assets
Inventories
Spares & Supplies
Accounts Receivable
Loans, Advances and Deposits
Short Term Investment
Cash and Cash Equivalents
TOTAL ASSETS
EQUITY AND LIABILITIES
Shareholders Equity
Issued Share Capital
Share Premium
Excess of Issue Price over Face Value of GDRs
Capital Reserve on Merger
Revaluation Surplus
Fair Value Gain on Investment
Retained Earnings
13
14
4(b)
6(c)
18
19
20
21
22
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Dhaka
27 April, 2015
Amount in Taka
Notes
2014
2013
23
11,206,885,677
10,490,699,094
24
(6,102,694,323)
5,104,191,354
(5,651,898,878)
4,838,800,216
(2,686,014,518)
(398,762,237)
(2,287,252,281)
2,418,176,836
(2,514,527,446)
(375,565,912)
(2,138,961,534)
2,324,272,770
Operating Expenses
Administrative Expenses
Selling, Marketing and Distribution Expenses
Profit from Operations
27
28
Other Income
Finance Cost
Profit Before Contribution to WPPF & Welfare Funds
29
30
521,171,647
(724,314,963)
2,215,033,520
510,588,200
(636,587,090)
2,198,273,880
31
(105,477,787)
(104,679,709)
2,109,555,733
2,093,594,171
32
(581,258,160)
(436,782,844)
(144,475,316)
1,528,297,573
(688,831,391)
(324,415,546)
(364,415,845)
1,404,762,780
6(c)
967,032
1,529,264,605
1,341,619
1,406,104,399
33
4.15
3.82
367,851,652
367,851,652
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Dhaka
27 April, 2015
64 I Annual Report 2014 I Statement of Profit or Loss and Other Comprehensive Income
Amount in Taka
For the Year ended 31 December 2014
Share
Share Excess of Issue
Capital Revaluation Fair Value
Retained
Total
Capital
Premium Price over Face Reserve on
Surplus
Gain on
Earnings
Value of GDRs
Merger
Investment
Balance as on
3,503,349,070 5,269,474,690 1,689,636,958 294,950,950 1,349,578,805 1,341,619 7,667,220,373 19,775,552,465
January 01, 2014
Total Comprehensive
Income for 2014:
-
-
-
-
-
- 1,528,297,573 1,528,297,573
Profit for the year
Other Comprehensive Income -
-
-
-
-
967,032
-
967,032
Transactions with
the Shareholders:
-
-
-
-
-
- (350,334,907) (350,334,907)
Cash Dividend for 2013
-
-
-
-
- (175,167,450)
Stock Dividend for 2013
175,167,450
Adjustment for Depreciation
-
-
-
- (16,061,652)
-
16,061,652
on Revalued Assets
Adjustment for Deferred Tax
-
-
-
- (34,296,838)
-
- (34,296,838)
on Revalued Assets
Balance as on
December 31, 2014 3,678,516,520 5,269,474,690 1,689,636,958 294,950,950 1,299,220,315 2,308,651 8,686,077,241 20,920,185,325
Number of Shares
367,851,652
56.87
Net Asset Value (NAV) Per Share
Ali Nawaz
Chief Financial Officer
Dhaka
27 April, 2015
Amount in Taka
2014
2013
11,086,465,849
(8,240,584,352)
2,845,881,497
10,407,897,987
(7,880,610,113)
2,527,287,874
(724,314,963)
489,970,647
(394,128,824)
2,217,408,357
(636,587,090)
512,424,678
(272,794,704)
2,130,330,758
(2,778,797,453)
(56,321,506)
7,615,792
551,356,330
(2,276,146,837)
(2,739,061,076)
(25,370,921)
5,401,817
(339,784,835)
(3,098,815,015)
(340,756,861)
376,855,168
(350,853,554)
(314,755,247)
(228,030,079)
1,239,316,207
(47,581)
1,011,238,547
(373,493,727)
595,732,966
222,239,239
42,754,290
552,978,676
595,732,966
6.03
6.08
367,851,652
350,334,907
Salman F Rahman
Vice Chairman
Nazmul Hassan
Managing Director
Ali Nawaz
Chief Financial Officer
Dhaka
27 April, 2015
The registered office of the company is located at House No. 17, Road No. 2, Dhanmondi R/A, Dhaka. The industrial units are
located at Tongi and Kaliakoir of Gazipur district vicinities close to the capital city Dhaka.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Any revision of accounting estimates are recognized in the period in which the estimate is revised and in any future periods
affected.
In particular, the key areas of estimation, uncertainty and critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the financial statements include depreciation, inventory valuation,
accrued expenses, other payable and deferred liability for gratuity.
3.
The accounting principles and policies in respect of material items of financial statements set out below have been applied
consistently to all periods presented in these financial statements.
Cash dividend income on investment in shares is recognized on approval of said dividend in the annual general meeting.
Stock dividend income (Bonus Shares) is not considered as revenue.
3.2.2
Maintenance Activities
The company incurs maintenance costs for all its major items of property, plant and equipment. Repair and
maintenance costs are charged as expenses when incurred.
3.2.3
Depreciation
Depreciation is provided to amortise the cost of the assets after commissioning, over the period of their expected
useful lives, in accordance with the provisions of IAS 16: Property, Plant and Equipment. Depreciation is provided at
the following rates on reducing balance basis:
Building and Other Construction
2 %- 10%
Plant and Machinery
5% -15%
Furniture & Fixtures
10%
Transport & Vehicle 20%
Office Equipment
10% -15%
3.5.1
Financial assets
Financial assets of the company include cash and cash equivalents, accounts receivable and other receivables. The
company initially recognizes receivable on the date they are originated. All others financial assets are recognized
initially on the date at which the company becomes a party to the contractual provisions of the transaction. The
company derecognizes a financial asset when, and only when the contractual rights or probabilities of receiving the
cash flows from the asset expire or it transfer the rights to receive the contractual cash flows on the financial asset
in a transaction in which substantially all the risk and rewards of ownership of the financial asset are transferred.
3.5.1(a)
Accounts Receivable
Accounts receivable are created at original invoice amount less any provisions for doubtful debts. Provisions
are made where there is evidence of a risk of non-payment, taking into account aging, previous experience
and general economic conditions. When an accounts receivable is determined to be uncollected it is written off,
firstly against any provision available and then to the profit and loss account. Subsequent recoveries of amounts
previously provided for are credited to the profit and loss account.
3.5.2
Financial Liability
Financial liabilities are recognized initially on the transaction date at which the company becomes a party to
the contractual provisions of the liability. The company derecognizes a financial liability when its contractual
obligations are discharged or cancelled or expire.
Finance liabilities include payable for expenses, liability for capital expenditure and other current liabilities.
3.6 Impairment
3.7 Inventories
Inventories are carried at the lower of cost and net realizable value as prescribed by IAS 2: Inventories. Cost is determined
on weighted average cost basis. The cost of inventories comprises of expenditure incurred in the normal course of business
in bringing the inventories to their present location and condition. Net realizable value is based on estimated selling price
less any further costs expected to be incurred to make the sale.
3.8 Provisions
A provision is recognized in the statement of financial position when the company has a legal or constructive obligation as
a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation. Provision is ordinarily measured at the best estimate of the
expenditure required to settle the present obligation at the date of statement of financial position. Where the effect of time
value of money is material, the amount of provision is measured at the present value of the expenditures expected to be
required to settle the obligation.
Current Tax
Current tax is the expected tax payable on the taxable income for the year, and any adjustment to tax payable in respect of
previous years. The company qualifies as a Publicly Traded Company; hence the applicable Tax Rate is 27.50%.
Deferred Tax
The company has recognized deferred tax using balance sheet method in compliance with the provisions of IAS 12: Income
Taxes. The companys policy of recognition of deferred tax assets/ liabilities is based on temporary differences (Taxable or
deductible) between the carrying amount (Book value) of assets and liabilities for financial reporting purpose and its tax
base, and accordingly, deferred tax income/expenses has been considered to determine net profit after tax and earnings per
shares (EPS).
A deferred tax asset is recognized to the extent that it is probable that future taxable profit will be available, against which
temporary differences can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent
that it is no longer probable that the related tax benefit will be realized.
The company has accounted for and disclosed employee benefits in compliance with the provisions of IAS 19: Employee
Benefits.
The cost of employee benefits is charged off as revenue expenditure in the period to which the contributions relate.
The company recognizes contribution to defined contribution plan as an expense when an employee has rendered services
in exchange for such contribution. The legal and constructive obligation is limited to the amount it agrees to contribute to
the fund.
Though no valuation was done to quantify actuarial liabilities as per the IAS 19 : Employee Benefits, such valuation in not
likely to yield a result significantly different from the current provision.
The basis of computation of number of shares as stated above is in line with the provisions of IAS 33: Earning per Share.
The logic behind this basis, as stated in the said IAS is that the bonus Shares are issued to the existing shareholders without
any consideration, and therefore, the number of shares outstanding is increased without an increase in resources.
The monetary assets and liabilities, if any, denominated in foreign currencies at the financial position date are translated
at the applicable rates of exchanges ruling at that date. Exchange differences are charged off as revenue expenditure in
compliance with the provisions of IAS 21: The Effects of Changes in Foreign Exchange Rates.
Land
Building
and Other
Constructions
Plant
and
Machinery
Furniture
and
Fixtures
Transport
and
Vehicle
Office
Equipment
Total
Cost
6,333,171,363
3,302,101,973
At January 01, 2013
7,393,575,590
13,549,431
780,509
Additions during the year
309,357,824
24,037,626
Transferred & Capitalized
2,333,797,946
Disposal during the year
(2,087,118)
-
3,302,882,482
6,370,758,420
10,034,644,242
883,415,433
169,131,203
2,765,654,219
326,077,583
(1,603,706)
1,052,546,636
3,090,128,096
3,302,882,482
5,318,211,784
6,944,516,146
Accumulated Depreciation
At January 01, 2013
Depreciation during the year
Adjustment for assets
disposed off
Accumulated Depreciation
at December 31, 2013
Net Book Value
December 31, 2013
Capital Work in Progress
Carrying Value as on December 31, 2013
4,114,780,827
575,639,144
(3,605,130)
4,686,814,841
(90,000)
(1,911,424)
2013
2,263,068,219
2,471,903,719
4,734,971,938
(427,051,445)
(427,051,445)
2,342,290,771
2,278,613,020
4,620,903,791
(2,357,835,572)
(24,037,626)
(2,333,797,946)
Balance as on December 31
4,307,920,493
2,263,068,219
Balance as on January 01
Addition during the year
5.
1,349,578,805
(16,061,652)
(34,296,838)
1,299,220,315
1,406,527,880
(18,235,282)
(38,713,793)
1,349,578,805
Intangible Assets
This consists of as follows:
Balance 01-01-2014 Addition 2014 Amortized in 2014 Balance 31-12-2014
Product development, Licensing and
Marketing Rights
Software
6.
189,856,528
8,366,981
198,223,509
51,836,992
4,484,514
56,321,506
Investment in Shares
(11,142,012)
(8,194,813)
(19,336,825)
230,551,508
4,656,682
235,208,190
2014
2013
4,190,477
1,569,450
5,759,927
3,223,445
1,569,450
4,792,895
Bangladesh
Export Import Co. Ltd.
Central Depository
Bangladesh Ltd.
3,223,445
967,032
4,190,477
1,569,450
1,569,450
100,107
15,016
115,123
571,182
571,182
Tk.
Amount in Taka
Fair market value of 115,123 shares (including 15,016 shares received as stock dividend
for the year 2013) of Bangladesh Export Import Co. Ltd. at Tk. 36.40 per share
4,190,477
Less Investment at beginning of the year
3,223,445
Fair Value Gain
967,032
Balance as on January 01, 2014
1,341,619
Balance as on December 31, 2014
2,308,651
(d)
7.
The shares of Bangladesh Export Import Co. Ltd. are listed in Dhaka and Chittagong Stock Exchanges. The market value of
each share of Bangladesh Export Import Co. Ltd. on last working day of the year was Tk. 36.40 in Dhaka Stock Exchange
Ltd. and Chittagong Stock Exchange Ltd. Shares of CDBL are not traded.
Inventories
This consists of as follows :
Finished Goods
Work in Process
Raw Materials
Packing Materials
Laboratory Chemicals
Physician Samples
Materials in Transit
8.
2014
2013
633,692,189
171,815,679
637,080,994
424,461,374
550,984
149,875,483
476,180,635
2,493,657,338
644,005,694
204,755,943
787,194,854
440,279,801
800,984
92,234,008
242,610,702
2,411,881,986
399,537,644
11,284,736
143,361,518
554,183,898
318,538,085
9,829,034
104,985,288
433,352,407
9.
Accounts Receivable
This includes receivable of Tk. 136,834,694 equivalent to US $ 1,763,334 (on 31-12-2013 Tk. 158,658,136 equivalent to US $
2,049,754) against export sales.
This also includes Tk. 1,118,478,352 due from I & I Services Ltd., who provides distribution service to the Company and a
Related Party. The maximum amount due from that company during the year was Tk. 1,171,257,041on 30-11-2014.
The receivables on account of Export sales are fully secured against Letter of Credit while the others are unsecured but
considered good.
No amount was due from the directors, managing agent, managers and other officers of the company and any of them severally
or jointly with any other person.
10.
Amount in Taka
2014
2013
54,354,123
217,516,529
14,620,213
27,652,694
21,812,942
50,029,753
132,711,063
1,257,096
55,699,183
9,716,674
124,010,046
422,209,729
21,116,922
15,032,617
55,933,569
1,223,673,153
43,788,956
224,271,781
12,824,382
21,814,251
18,238,318
39,234,247
85,456,445
39,939,537
51,306,101
9,692,064
156,328,603
409,577,706
28,932,441
9,968,983
35,263,296
1,186,637,111
(a) The maximum amount due from the employees during the year was Tk. 56,071,933 on 31 October, 2014.
(b) No amount was due from the directors, managing agent, managers and other officers of the company and any of them severally
or jointly with any other person, except as stated above.
(c) No amount was due from any related party.
11.
12.
13.
3,218,618
3,474,616
190,573,819
28,446,802
222,239,239
85,680,218
506,578,132
595,732,966
5,000,000,000
4,100,000,000
9,100,000,000
5,000,000,000
4,100,000,000
9,100,000,000
517,757,500
2,788,335,050
59,512,500
312,911,470
3,678,516,520
517,757,500
2,613,167,600
59,512,500
312,911,470
3,503,349,070
Amount in Taka
350,334,907
17,516,745
367,851,652
3,503,349,070
175,167,450
3,678,516,520
2014
No. of shares % of Share Capital
Sponsors:
A S F Rahman
Salman F Rahman
Associates and Other Directors
Foreign Investors
ICB & Other Investors Account
General Public & Institutions
2013
No. of shares % of Share Capital
7,469,709
7,487,196
33,414,339
93,038,941
55,940,961
170,500,506
2.03
2.04
9.08
25.29
15.21
46.35
7,114,009
7,130,663
34,020,550
85,094,612
41,994,537
174,980,536
2.03
2.04
9.71
24.29
11.98
49.95
367,851,652
100
350,334,907
100
2013
2014
2013
1 to 499
500
to 5,000
5,001 to 10,000
10,001 to 20,000
20,001 to 30,000
30,001 to 40,000
40,001 to 50,000
50,001 to 100,000
100,001 to 1,000,000
Over 1,000,000
65,544
20,786
1,753
930
281
128
102
165
191
33
68,939
21,066
1,509
674
187
101
55
94
166
40
72.90%
23.12%
1.95%
1.03%
0.31%
0.14%
0.11%
0.19%
0.21%
0.04%
Total
89,913
92,831
100%
Number of Shares
2014
% of Share Capital
2013
2014
2013
74.26%
22.69%
1.63%
0.73%
0.20%
0.11%
0.06%
0.10%
0.18%
0.04%
8,240,906
8,836,043
30,918,582 29,757,275
12,555,227 10,448,670
13,111,006
9,334,640
6,909,593
4,535,749
4,498,146
3,520,388
4,660,402
2,457,436
12,172,549
6,548,929
50,601,331 49,278,664
224,183,910 225,617,113
2.24%
8.41%
3.41%
3.56%
1.88%
1.22%
1.27%
3.31%
13.76%
60.94%
2.52%
8.49%
2.98%
2.67%
1.29%
1.01%
0.70%
1.87%
14.07%
64.40%
100%
367,851,652 350,334,907
100%
100%
14.
15.
2014
2013
608,901,223
292,808,104
901,709,327
1,001,325,040
150,075,662
1,151,400,702
16.
186,760,624
429,486,607
616,247,231
(195,948,111)
420,299,120
152,206,085
220,923,094
373,129,179
(120,839,679)
252,289,500
127,491,016
292,808,104
420,299,120
102,213,838
150,075,662
252,289,500
Gratuity Payable
Balance as on January 01
Provisions during the year
Paid during the year
(b)
284,163,669
66,915,861
351,079,530
(13,426,744)
337,652,786
223,962,507
68,652,000
292,614,507
(8,450,838)
284,163,669
403,869,732
741,522,518
326,464,481
610,628,150
17.
Balance as on January 01
Addition during the year:
Deferred Tax on Assets (cost basis)-Note : 32
Deferred Tax on revalued amount
18.
Amount in Taka
2014
2013
1,550,589,207
1,147,459,569
144,475,316
34,296,838
1,729,361,361
364,415,845
38,713,793
1,550,589,207
1,487,792,991
1,665,328,302
3,153,121,293
1,219,126,718
775,639,407
781,500,000
2,776,266,125
19.
20.
536,347,056
127,491,016
663,838,072
652,689,720
102,213,838
754,903,558
202,020,182
124,323,489
3,618,784
27,748,384
357,710,839
123,397,754
254,356,090
915,874
4,500,835
383,170,553
60,155,328
104,127,787
38,282,595
103,299,709
164,283,115
141,582,304
325,685,371
421,487,672
15,295,172
762,468,215
(394,128,824)
368,339,391
274,064,529
305,845,595
18,569,951
598,480,075
(272,794,704)
325,685,371
21.
Accrued Expenses
This is unsecured, falling due within one year and consists of as follows :
For Expenses
Workers Profit Participation and Welfare Funds - current years expense
(net off interim payments).
22.
23.
2013
10,706,417,075
500,468,602
11,206,885,677
9,819,409,651
671,289,443
10,490,699,094
Work-in-Process (Opening)
Materials Consumed (Note: 25)
Factory Overhead (Note: 26)
Total Manufacturing Cost
204,755,943
4,498,531,078
1,735,116,121
6,438,403,142
246,214,085
4,257,643,464
1,493,080,956
5,996,938,505
Work-in-Process (Closing)
Cost of Goods Manufactured
(171,815,679)
6,266,587,463
(204,755,943)
5,792,182,562
644,005,694
6,910,593,157
629,828,725
6,422,011,287
(174,206,645)
(633,692,189)
6,102,694,323
(126,106,715)
(644,005,694)
5,651,898,878
Local Sales
Export Sales equivalent US $ 6,473,721 (in 2013 US $ 8,614,393)
Sales represents:
Quantity
24.
Product Category
Unit
2014
2013
Million pcs.
2,998.47
3,173.13
Million pcs.
70.72
66.75
Kg
177,354
170,516
Liquid Nitrogen
Liter
475,012
387,153
Item wise quantity and value of Finished Goods Stock are as follows :
Stock as January 01, 2014
Tablet, Capsule, Suppository & DPI
Liquid, Cream and Ointment, Suspension, IV Fluid, Amino Acid, Ophthalmic,
Nebulizer Solution, Injectable and Inhaler
Active Pharmaceutical Ingredients
Unit
Quantity
Value (Tk.)
Million pcs.
518.83
394,979,619
Million pcs.
Kg
6.69
1,867
243,292,676
5,733,399
644,005,694
Million pcs.
426.64
389,211,055
Million pcs.
Kg
6.78
2,450
236,895,019
7,586,115
633,692,189
25.
Materials Consumed
This is made-up as follows :
Opening Stock
Purchase
Closing Stock
26.
Amount in Taka
2014
2013
1,228,275,639
4,332,348,791
(1,062,093,352)
4,498,531,078
1,289,156,749
4,196,762,354
(1,228,275,639)
4,257,643,464
500,724,043
104,500,367
12,514,466
2,021,257
60,222
10,631,435
5,242,079
1,231,794
146,720,695
13,914,877
5,787,905
121,321,879
75,773,777
5,046,880
46,683,540
674,924,448
8,016,457
1,735,116,121
451,123,633
91,719,472
15,542,159
1,582,778
23,570
10,397,369
4,627,240
937,973
136,216,539
12,171,521
4,736,650
127,098,536
65,589,318
4,940,526
38,338,641
520,953,425
7,081,606
1,493,080,956
Factory Overhead
This consists of as follows :
Salary & Allowances
Repairs and Maintenance
Insurance Premium
Municipal Tax & Land Revenue
Advertisement
Registration & Renewal
Travelling & Conveyance
Entertainment
Research and Development
Printing & Stationery
Telephone, Internet & Postage
Toll Expense
Electricity, Gas & Water
Training & Conference
Plant Certification and Regulatory Approvals
Depreciation
Other Expenses
27.
a)
Salary and allowances include Companys Contribution to provident fund of Tk. 9,619,537 (in 2013 Tk. 8,531,034).
(b)
The value of imported stores and spares consumed is Tk. 67,012,977 is included in repairs & maintenance. This also
includes maintenance of office, premises, vehicles, building, machinery, equipment and other infrastructures.
(c)
Other expenses does not include any item exceeding 1% of total revenue.
Administrative Expenses
This consists of as follows :
Salary & Allowances
Rent
Repairs and Maintenance
Registration & Renewals
Travelling & Conveyance
Entertainment
Printing & Stationery
Audit Fee
Telephone, Internet & Postage
Electricity, Gas & Water
Legal & Consultancy
AGM, Company Secretarial and Regulatory Expense
Advertisement
Training & Conference
Depreciation
Remuneration to Independent Directors
Other Expenses
193,314,218
10,066,000
30,338,920
3,061,050
19,583,051
4,063,944
3,443,447
1,300,000
4,889,150
10,576,720
5,181,653
39,532,229
58,138
7,467,133
26,102,050
140,000
39,644,534
398,762,237
177,266,156
9,879,000
28,111,235
7,262,546
18,280,955
3,749,384
2,926,769
1,200,000
4,682,370
10,715,700
13,779,574
41,284,006
19,126
6,590,078
20,147,370
140,000
29,531,643
375,565,912
(a) Salary and allowances include provident fund contribution of Tk. 5,059,756 (in 2013 Tk. 4,899,089).
(b) Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
(C) Remuneration is paid to the Independent Directors for attending Board, Audit Committee and Other Meetings.
28.
2014
2013
748,845,866
32,948,068
5,719,886
315,983,949
24,724,155
27,433,905
10,021,432
6,900,564
31,046,918
54,556,296
14,527,141
150,637,854
322,661,819
93,314,746
33,079,698
38,333,120
296,368,010
64,083,198
16,065,656
2,287,252,281
699,256,429
22,457,790
5,559,593
293,119,372
21,939,089
26,237,688
8,985,010
6,191,556
27,872,397
53,463,511
17,460,874
144,655,691
303,056,182
84,480,104
32,613,811
60,743,782
266,173,800
48,764,908
15,929,947
2,138,961,534
(a) Salary and allowances include provident fund contribution of Tk. 17,870,356 (in 2013 Tk. 15,749,142).
(b) Delivery expense includes distribution commission on local sales of Formulation and IV Fluid products paid to I & I Services
Ltd., a Related Party.
(c) Repairs and maintenance includes maintenance of office, premises, vehicles, building, equipment and other infrastructures.
(d) Sample expense includes VAT on sample and related dispatch expense.
29.
Other Income
This is arrived at as follows :
Interest on FDR & Short term Investment
Dividend Income
Royalty
Exchange Rate Fluctuation Gain / (Loss)
Profit on Sale of Fixed Assets (Note 35)
30.
489,970,647
1,427,955
24,763,177
1,452,991
3,556,877
521,171,647
512,424,678
3,141,501
7,785,736
(17,198,454)
4,434,739
510,588,200
391,510,508
175,227,715
64,812,955
71,225,739
21,538,046
724,314,963
256,763,094
219,205,840
51,362,542
81,687,639
27,567,975
636,587,090
Finance Cost
This is arrived at as follows :
Interest on Working Capital Loan
Interest on Project / Consortium Loan
Interest on Lease Finance
Interest on Loan from PF, WPPF & Welfare Fund
Other Bank Charges
31.
32.
Amount in Taka
2014
2013
421,487,672
15,295,172
436,782,844
305,845,595
18,569,951
324,415,546
144,475,316
581,258,160
364,415,845
688,831,391
Tk.
1,528,297,573
1,404,762,780
Nos.
367,851,652
367,851,652
Tk.
4.15
3.82
33.
34.
Nature of Transactions
Local Delivery
Distribution Commission
11,749,988,365 1,118,478,352
180,454,668
-
487,367,615 2,475,026,831
Value of
Transaction in 2014
Balance at
year end
35.
Profit
Mode of
Disposal
Name of Parties
573,000
10,623,868
423,000
6,714,953
150,000
3,908,915
150,000
- Negotiation Various Individuals
7,465,792 3,556,877 Negotiation Various Individuals
Tk. 11,196,868
7,137,953
4,058,915
7,615,792 3,556,877
36.
Remuneration
Gratuity
Contribution to Provident Fund
Bonus
Medical
Others
Total
2014
2013
143,248,563
5,773,000
6,834,370
11,503,600
4,761,860
30,078,994
202,200,387
129,950,600
5,088,500
6,106,200
10,177,000
3,303,706
29,345,360
183,971,366
(b) The above includes salary, allowances, and perquisites amounting Tk. 14,357,819 paid to the Managing Director.
(c) This also includes Tk. 140,000 paid to Independent Directors for attending Board, Audit Committee and other meetings.
(d) Excepting as stated above (c) no board meeting fee was paid to any directors.
(e) No amount of money was expended by the company for compensating any member of the board for special services
rendered.
37.
Unit
Production Capacity
2014
Million Pcs
Million Pcs
Actual Production
Capacity Utilization
2013
2014
2013
4,052.70 3,973.90
3,265.76
3,287.61
80.58% 82.73%
72.30
68.88
76.96% 78.61%
94.03
87.62
2014
2013
Production does not include goods manufactured under contract manufacturing arrangement from third partys manufacturing
sites.
38.
39.
40.
127,491,016
292,808,104
Tk. 420,299,120
41.
Excepting above, no circumstances have arisen since the date of Statement of Financial Position which would require
adjustment to, or disclosure in, the financial statements or notes thereto.
47. Financial Risk Management
The management of company has overall responsibility for the establishment and oversight of the companys risk management
framework. Risk management policies, procedures and systems are reviewed regularly to reflect changes in market conditions
and the companys activities. The company has exposure to the following risks for its use of financial instruments.
- Credit risk
- Liquidity risk
- Market risk
Credit risk is the risk of a financial loss to the company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from the companys receivables. Management has a credit policy in place and
exposure to credit risk is monitored on an ongoing basis. As at 31 December 2014 substantial part of the receivables are those
from its related company and subject to insignificant credit risk. Risk exposures from other financial assets. i.e. Cash at bank
and other external receivables are nominal.
47.02 Liquidity Risk
Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The companys
approach to managing liquidity (cash and cash equivalents) is to ensure as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due under both normal and stressed conditions without incurring unacceptable losses or
risking damage to the companys reputation. Typically, the company ensures that it has sufficient cash and cash equivalent
to meet expected operational expenses including financial obligations through preparation of the cash flow forecast with due
consideration of time line of payment of the financial obligation and accordingly arrange for sufficient liquidity/fund to make the
expected payment within due date. In extreme stressed conditions the company may get support from the related company in
the form of short term financing.
47.03 Market Risk
Market risk is the risk that any change in market prices such as foreign exchange rates and interest will affect the companys
income or the value of its holdings financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters.
(a) Currency risk
The company is exposed to currency risk on certain revenues and purchases such as revenue from foreign customers and
import of raw material, machineries and equipment. Majority of the companys foreign currency transactions are denominated in
USD and relate to procurement of raw materials, machineries and equipment from abroad. The company have received foreign
currency loan which shall be repaid in foreign currency.
(b) Interest rate risk
Interest rate risk is the risk that arises due to changes in interest rates on borrowing. The foreign currency loan is subject to
floating rates of interest. Local loans are, however, not significantly affected by fluctuations in interest rates. The company has
not entered into any type of derivative instrument in order to hedge interest rate risk as at the reporting date.
Salman F Rahman
Nazmul Hassan
Vice Chairman
Managing Director
Dhaka
27 April, 2015
Ali Nawaz
Chief Financial Officer
www.beximcopharma.com
www.beximcopharma.com
Proxy Form
BEXIMCO PHARMACEUTICALS LIMITED
17 Dhanmondi R/A, Road No. 2, Dhaka-1205, Bangladesh
I/We ______________________ ___________ ___________ ___________ of ___________ ___________ ______________
___________ ___________ ___________ ___________ __being a member of Beximco Pharmaceuticals Limited hereby appoint
Mr./Ms. ___________ ___________ ___________ ___________ ________of ___________ ___________ ___________
___________ ___________ ___________ as my/our proxy to attend and vote for me/us on my/our behalf at the 39th Annual General
Meeting of the Company to be held on Saturday, the 13th June, 2015 at 10.30 a.m. at Beximco Industrial Park, Sarabo, Kashimpur,
Gazipur and at any adjournment thereof.
As witness my/our hand this ___________ __________________ ___________ day of June, 2015.
Signed by the said in presence of ___________ ___________ ___________ ___________ ___________ ___________________
Revenue
Stamp
Tk. 20.00
___________________
(Signature of the Proxy)
Dated: ___________ ___
____________________
(Signature of the Witness)
____________________ __
Signature of the Shareholder(s)
Register Folio / BOID No. : ___________ ___________ ___________ ___________ __
Dated: __________________
Note: A member entitled to attend and vote at the Annual General Meeting may appoint a Proxy to attend and vote in his/her stead. The
Proxy Form, duly stamped, must be deposited at the Registered Office of the Company not later than 48 hours before the time fixed
for the meeting.
Signature Verified
_______________
Authorised Signatory
1.
2.
Please note that the AGM can only be attended by the honourable shareholder or properly constituted Proxy. Therefore, any
friend or children accompanying with honourable Shareholder or Proxy cannot be allowed into the meeting.
I Annual Report 2014 I 87
Please present this slip at the reception desk.
Corporate Information
Operational Headquarters
19 Dhanmondi R/A, Road # 7
Dhaka- 1205, Bangladesh
Phone : +880-2-58611001
Fax : +880-2-58614601
E-mail : info@bpl.net
Website : www.beximcopharma.com
Legal Advisor
Corporate Headquarters
Auditors
Factory
Banker
Tongi Unit
126 Kathaldia, Tongi, Gazipur
Bangladesh
Kaliakoir Unit
Plot No. 1070/1083, Mouchak
Kaliakoir, Gazipur
Bangladesh
Public Relations
IMPACT PR
Apartment # A-1, House # 17,
Road # 4, Gulshan-1,
Dhaka-1212, Bangladesh
FTI Consulting LLP
200 Aldersgate
Aldersgate Street, London EC1A 4HD
United Kingdom
Rafique-ul Huq
Barrister-at-Law
47/1 Purana Paltan
Dhaka-1000, Bangladesh
For GDRs
Nominated Advisor
SPARK Advisory Partners Limited
5 St. John's Lane, EC1M 4BH,
LONDON, UK
Broker
Daniel Stewart & Company PLC
Becket House, 36 Old Jewry,
London EC2R 8DD, UK
Custodian
HSBC
Anchor Tower, 1/1-B, Sonargaon Road
Dhaka- 1205, Bangladesh
Depository Bank
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
www.beximcopharma.com
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